Many closed Party City stores are on the verge of transforming into spaces for new, popular retail chains. As Party City shutters its doors, opportunities are arising for major brands to step in and revitalize these vacant locations. Shoppers could soon see a familiar face replacing the once-bustling party supply stores, bringing fresh retail experiences to these areas. Here’s everything we know so far.
What’s next for empty Party City stores?
Your old Party City might not be filled with balloons and streamers much longer. Instead, you could be shopping for books, a new recliner, some cowboy boots, or a whole bunch of discounted goodies.
Party City announced last December that they were closing all their stores right away. They’d been having financial problems and slow sales for a while, even after filing for bankruptcy.
Now, we’re starting to see what’s going to happen to all those empty Party City stores. The leases for the stores were auctioned off on February 7th, and the winners had already been announced in a Texas court.
The biggest winner? Dollar Tree! They snagged nearly 150 former Party City locations. Dollar Tree, which also owns Family Dollar, is looking to expand in a big way, as reported by the Wall Street Journal last fall. As a matter of fact, Dollar Tree has been buying up leases from other closing stores as well. In 2024, the company purchased 170 leases from fellow dollar store chain 99 Cents Only, which went bankrupt.
But Dollar Tree isn’t the only discount store interested in taking over the vacated sites of closed Party City Stores. Five Below, where most things cost under $5, won the bid for over 40 closed locations of Party City.
Other familiar names are joining the trend as well. Barnes & Noble and Books-A-Million could soon be moving in, alongside Burlington Coat Factory, Rack Room Shoes, La-Z-Boy, and Cavender’s Western Wear. So, get ready for some changes at your local shopping centers, where Party City was once a familiar presence.
In Tennessee, for example, the leases for various Party City stores were acquired by the following bidders:
- Murfreesboro store at 1979 Old Fort Parkway had a $110,000 bid from Cavender’s
- Nashville store at 3177 Lebanon Pike had a $0 bid from Five Below
- Knoxville store at 2901 Tazewell Pike had a $63,333 bid from Alish Patel
- Knoxville store at 11334 Parkside Drive had an $83,942 bid from Barnes & Noble
- Sevierville store at 713 Winfield Dunn Parkway had a $61,009 bid from Winfield, LLC
- Jackson store at 1253 Vann Drive had a $0 bid from Dollar Tree
- Hixson store at 5760 Highway 153 had a $0 bid from Dollar Tree
A court hearing to approve the lease transfers from the auction is scheduled to take place later this month in Houston.
What happened to Party City?
Party City, the go-to store for party supplies, announced in December 2024 that they are closing all of their stores and going out of business. This news came after the company struggled with financial difficulties, including high debt and declining sales, even after filing for bankruptcy earlier in the year.
Essentially, Party City couldn’t overcome a combination of challenges, including:
- Heavy Debt: The company had a lot of debt, which made it hard to keep the business running smoothly.
- Rising Costs: The costs of running its business, including things like rent and supplies, were going up.
- Increased Competition: It faced competition from other stores like Walmart and Target, as well as online retailers like Amazon, who also sell party supplies.
- Changing Consumer Habits: People’s shopping habits changed, with fewer people going to a dedicated party supply store when they could find similar items elsewhere.
Despite efforts to restructure and improve its business, Party City ultimately couldn’t overcome these challenges and decided to close its doors.